Lithium South partner Posco completes due diligence

Executive Summary

• Due diligence on the sale of Lithium South’s Hombre Muerto North lithium project to Posco Argentina SAU is substantially completed, with only minor items remaining.
• The parties are now negotiating a definitive purchase agreement, targeting completion within the timeline previously announced (by end‑2025).
• Upon signing, Lithium South will disclose its upcoming annual general and special meeting dates and details of an issuer bid to repurchase all outstanding securities.

Key Details

• Transaction Parties: Lithium South Development Corp. (seller) and Posco Argentina SAU (buyer), the 100 % Argentine subsidiary of Posco Holdings Inc.
• Due Diligence Status: Substantially completed; remaining items are limited to closing costs, legal & accounting fees, and tax considerations.
• Definitive Agreement: Negotiations have commenced; parties expect to finalize the agreement within the previously announced timeframe (by end‑2025).
• Project Description: Hombre Muerto North lithium project located in Salta and Catamarca provinces, Argentina; NI 43‑101 compliant resource of 1,583,200 t LCE (736 mg/L Li) – 1,463,000 t measured, 120,000 t indicated.
• Future Corporate Actions: Lithium South will announce the date of its annual general and special meeting and provide details on an issuer bid to purchase up to 100 % of its issued and outstanding securities once the definitive agreement is executed.
• Additional Context: The project sits adjacent to Posco’s own lithium development; a preliminary economic assessment (April 30 2024) indicates potential for a 15,600‑t/yr lithium carbonate plant.

Notable Quotes

(No direct quotes were provided in the release.)